Chesapeake income down due to lower natural gas prices

Chesapeake Energy Corp. reported net income for the third quarter 2009 of $186 million, a far cry from the $3.3 billion for the same period last year but still beating analysts’ expectations of $0.65 per share by 5 cents.

The Oklahoma City-based natural gas exploration and production company posted relatively flat production – about 1 percent compared to the previous quarter but a 7 percent increase over third quarter 2008 – of 2.483 billion cubic feet equivalent per day, according to the Nov. 2 results. Natural gas still accounts for 92 percent of the company’s total production, but executives recently said the company would be open to growing its oil business.

The company expects annual production growth of between 5 percent and 6 percent for 2009, and at least 8 percent and 12 percent in 2010 and 2011, respectively.

The company’s realized price for natural gas during the quarter was $6.44 per thousand cubic feet; without hedging, that price would have been $2.84 per Mcf. The realized price during the third quarter 2008 was $8.02 per Mcf.

jtronche@bizpress.net